Sanctions have helped Russia restructure economy – Putin

Measures that were meant to weaken the country are actually propelling its growth, according to the president

Russia has withstood Western pressure intended to cripple its economic growth and has only become stronger, President Vladimir Putin said on Thursday in Sochi.

The Russian leader was addressing the plenary session of the 20th annual meeting of the Valdai Discussion Club, which was attended by experts, politicians, diplomats, and economists from 42 countries.

“In general, the situation is stable. We have overcome all the sanctions-related issues, and have started the next stage of [economic] development on a new basis, which is fundamentally important,” Putin stated.

The president also highlighted that Western trade restrictions have been essentially restructuring the Russian economy in a positive way.

According to the report, the Russian government recorded over 660 billion rubles ($6.6 billion) in budget surplus in the third quarter of 2023 and there will be a deficit of around 1% of GDP for the year. The budget deficit is forecast to remain at the same level in 2024 and 2025.

“We are coping. And I have reason to believe that we will cope in the future,” the Russian president said.

Unemployment in the country fell to a record low of 3%, Putin noted, while disposable incomes continue to grow, contrary to the situation in the EU.

Putin emphasized that, despite the increase in spending on defense and security, the Russian government did not trade “butter for guns” and all social obligations were being fulfilled. Russia is also fully self-sufficient in basic food supplies, he added.

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